Kaihui price three reasons
The highly anticipated Grand Central in Kwun Tong City Centre is being sold at a “shocking low price” (the first batch of discounted price of 17388 yuan), which is not only lower than the second-hand property price in the district, even over Yuen Long. And some new prices in Tuen Mun, indeed, make the market wrong. It is estimated that there are three main reasons behind the “shocking price”: First, the developer’s letter (00083) draws on the bitter experience of the 1997 Xiaowanwan Blue Bay Peninsula, and last year even bought 8 sites, preferring to quickly cash in the bag; In the sales strategy, as a market of 1.5 million square meters, once the start of slow sales will be very troublesome, it is better to create a buying momentum, and then slowly raise prices according to the situation; Third, although it is a rare large new market in Kowloon, but Kwun Tong as a In the “poorest district” in Hong Kong, the purchasing power of old neighbourhoods should be limited.
The original site of Kaihui Land is the old building of Yumin Square, which belongs to the second and third phases of the “Kwun Tong City Centre Redevelopment Project” (the first phase is the completion of the year 2014, also the development of the letter by Guanxin. Huafeng) It can build 1.5 million square meters of residential buildings. In September 2014, it was voted by Huazhi (2008), which accounted for 90% and 10% respectively. The market price was between RMB 6 billion and RMB 7 billion. , equivalent to the floor price of 4,000 yuan to 4667 yuan per square.
If the goods are in rotation, don’t repeat the same mistakes.
As a rare new disk in the urban area of Kowloon, Kaihui’s opening position has been concerned. The high-end of the company has said that the opening price will be “referenced” to the new opening of the Kai Tak District. Therefore, despite the recent market downturn, the market still speculates that the price of Kaihui is at least “2 prefixes” (more than 20,000 yuan per square). After all, the new price in Kai Tak has recently reached 25,000 to 30,000 yuan. The answer to this Wednesday night was announced. The first batch of 205 flats in Kaihui was priced at $15,532 to $194,41. The average price was $17,388. Even the Hong Kong property market.
It is estimated that there are three main reasons behind this “shocking price”: First, Kaihui is expected to enter the company at the end of April 2021. The floor period is close to two and a half years. It can be said that there are many nights and long dreams, especially today’s global political and economic situation is turbulent and renewed. It is also difficult to accurately predict market conditions after two and a half years. On the other hand, the company has won a total of 8 sites last year, involving nearly 40 billion yuan (including the price of 17.3 billion Changsha Bay landlords), and the entire Hong Kong developer must ensure that “goods such as rotation” to support the follow-up project development. . In addition, in the last peak period of the property market (March 1997), the company took the lead in throwing more than 10 billion yuan to win the small West Bay King (Blue Bay Peninsula), and immediately went into the market situation, until 2000 was forced to ” The eclipse price of the sale unit almost dragged down the entire company; it is no wonder that the letter of the year is better to “really earn less” and to quickly cash out the bag.
Second, Kaihui has a total of 1999, it seems that there are not many; but the plate is mainly medium-sized units, the most detailed 452 square meters, the total floor area of 1.5 million square feet (if the “long bed” can be built 12,000 people ), it is a big project, and the “big heart” unit that is not easy to go to the goods, the sales strategy is very time-consuming. For example, the first batch of 205 gangs was launched this time, accounting for about one-tenth of the total. Once the sales are slow, it is bound to drag down the sales situation of the remaining 90% of the units. It is better to create a buying momentum at the beginning. The first batch of units will earn a lot if they earn less. Then, depending on the situation, the price will slowly increase. It was observed that the first demonstration unit was opened yesterday, attracting nearly 10,000 people and performing lively scenes in the market. This strategy is initially effective.
Starting Kowloon East, I am looking forward to it.
3. Although it is a large-scale new market in the urban area, according to the statistics of the Census and Statistics Department, Kwun Tong has been the “most poor” territory in Hong Kong for many years. The monthly median monthly income of the district was only $20,400, which was significantly lower than the territory-wide median. It is priced at $26,500 and is less than half of the median ($41,500) in the “richest district”. Kaihui is positioned as a medium-sized luxury residential unit instead of a boarding car. On the one hand, it is difficult to absorb the needs of public housing and small families in the district. On the other hand, although there are some middle-class areas in Kwun Tong, such as Kung Lok Road and Yue Wah Street. However, the old building in the area is famous for its spaciousness and practicality. If the old block wants to change to a new building with the same spacious feeling, at least double the price of the building, and the intention to change the building is limited. Just look at the land that has been completed for only 4 years, positioned as a mansion, and separated from Kaihui Street. Huafeng, the latest transaction price is only about 18,000 yuan, similar to the new price of luxury homes in the New Territories, can reflect the purchasing power of Kwun Tong District; as a view of the moon. The developer of Huafeng is believed to be the clearest.
Another problem in Kwun Tong District is that the old tenement buildings are intensively connected to the school network. They have always been less attractive to outsiders. However, with the redevelopment of old areas such as Yue Man Square, there are also a number of commercial buildings in the “Starting Kowloon East”. The formation of CBD2 has brought together many financial and service companies to move in, and the environmentally-friendly monorail system connecting Kai Tak District is expected to be completed in 2023. Kwun Tong District is expected to usher in the “new district”.
In the short term, Kaihui’s “shocking price” has shaken the property market in Hong Kong. The first and foremost is the existing and upcoming newcomers in Tseung Kwan O and the Northwest New Territories. It is difficult to convince buyers that the price in these areas can be more expensive than in Kwun Tong. At the same time, unless the follow-up batch units of Kaihui can significantly raise the price, the second-hand release will also need to be “bigger” to be considered by the buyer.
Furthermore, Cheung Kong (01113) Executive Director and “Luo Shen” Zhao Guoxiong bluntly said that the property market will be bleak in the coming year. It is expected to fall by a maximum of 20% (the nano-storey can drop by 30%), and Cheung Kong will have Sham Shui Po Hoi Wan Street and In the eighth phase of Kangcheng, the two large-caps sales were carried out. According to the company’s consistent style of “putting the price out of the market”, there may be a good show next year.